Harding Loevner International Small Companies Equity Q4 2024 Report

Harding Loevner
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(22min)

Summary

  • US stocks outperformed international markets in Q4 2024, driven by growth-oriented large-cap stocks and optimism around Trump's business-friendly policies.
  • International small caps fell 7.6% in Q4, largely due to currency weakness, despite a 3.9% gain for the year in dollar terms.
  • The portfolio underperformed due to weak stocks in Health Care, Industrials, and IT sectors, especially in Emerging Markets, with notable detractors like CellaVision and LEM Holdings.
  • Despite recent underperformance, the portfolio's high-quality, growth-oriented companies have strong fundamentals, creating attractive future return opportunities as valuations have become more reasonable.

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What Happened

International markets finished the final quarter of 2024 on a down note, while US stocks significantly outpaced the rest of the world, in both the quarter and the year, boosted by strong returns from growth-oriented heavyweights in the large-cap

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Harding Loevner LP is a growing global asset management firm headquartered in New Jersey, USA (Metro NYC). Harding Loevner manages over $52 billion in long-only equity portfolio strategies comprising of high-quality, growing companies in developed, emerging and frontier markets. Harding Loevner’s investment strategies are offered as institutional separate accounts, mutual funds, UCITS, and through sponsored wealth management programs. Harding Loevner's global client base includes leading global investment institutions, such as sovereign wealth funds, major foundations, endowments, pension plans, private family offices, and individuals. Harding Loevner's professional culture is one of transparency, collaboration, accountability and integrity. Harding Loevner is committed to providing all staff with opportunities for career advancement through education, training and personal achievement. Note: This account is not managed or monitored by Harding Loevner, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Harding Loevner's official channels.

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